Beijing among least profitable Airbnb destinations, as owners would need a paying customer for 3,771 nights to break even, UK insurer says
- UK-based CIA Landlords tracked more than 50 destinations across the globe as part of a study
- Landlords planning to buy any property in Beijing should be wary of getting into the Airbnb space, says insurer’s finance director
Rugby, England-based CIA Landlords tracked more than 50 destinations across the globe as part of a study and based its findings on the average price of a one-bed flat divided by the average Airbnb price per night. In Beijing, the average price of a one-bed flat is £648,595 (US$805,000) while the average cost to stay in an Airbnb is £172, the firm said.
“The reason why Beijing is one of the least profitable [Airbnb destinations] at the moment is because of the average property price that is too high compared to the Airbnb’s night costs. So, landlords who are planning to buy any property in Beijing should be wary of getting into the Airbnb space at the moment if they want to earn their money back and make profits,” said Richard Wayman, CIA Landlords’s finance director.
The study aims to let property owners who are looking to a make profit know that if they are planning to venture into the Airbnb space, then they should be wary of the location, as it plays a crucial role.
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